The Ledger Went Into the Furnace

TACOMA, April 19.—Special.—Today the most sensational evidence in the case of Receiver Joab of the Tacoma Grocery Company against President Charles E. Hale and Secretary Vanderhoof was brought out in Judge Stallcup's court. There were many exciting incidents during the day, and the wordy passages between the attorneys on both sides were short, swift and cutting. Several times Judge Stallcup was forced to call the attorneys to order and to caution them against disturbing the decorum of the courtroom. The room was filled with business and professional men, and the closest interest was manifested in every bit of the proceedings.

H. L. Runkle testified that he burned ninety-four of the books of the corporation, together with the invoices and correspondence. He and his son did the burning in the furnace of the Tacoma Grocery Company. Runkle swore that his action was the result of orders issued by J. D. Stacey, in whose employ he was at the time the burning was done. J. D. Stacey & Co. is the firm to which the Tacoma Grocery Company assigned. This was some time in the latter part of February.

W. L. Blackwell, ex-president of the Tacoma National Bank and a large stockholder in the grocery company, was placed on the stand. Mr. Blackwell swore that Hale had told him that the transfer of the books and stock of the grocery company to Stacey & Co. was done to protect the interests of stockholders and creditors from the claim of the Pennsylvania Mutual Insurance Company. The claim of the Pennsylvania company was in the form of a mortgage on the real estate of the grocery company. Mr. Blackwell further testified that Mr. Hale had told him that the sales and collections of Stacey & Co. aggregated $16,000. He said that Mr. Hale had never told him what became of the $42,000, or how it was spent. The minutes of the stockholders' meetings were shown to Mr. Blackwell. In the record of the meeting dated January 11 an entry was read to the effect that Mr. Blackwell had moved, seconded by Mr. Reilig, that the actions of the directors and officers in transferring the stock to Stacey & Co. be approved. Mr. Blackwell swore that he had not made such a motion, or that any motion of the kind was made at all. Mr. Blackwell then told how Hale had promised the stockholders access to the books and afterward had refused to allow him to inspect them, saying he did so on the advice of his attorneys.

I. W. Anderson, manager of the Tacoma Company, corroborated Mr. Blackwell's testimony to the effect that “the transfer of the stock to Stacey was all right, and Stacey is our man.” Mr. Anderson denied that he had been present at meetings of the stockholders in September and October, as shown by the minutes.

Walter Oakes, another stockholder and director, testified that he had not received any notices of meetings of stockholders or directors from September to January 11, notwithstanding the fact that the records showed that he was present.

Receiver A. E. Joab was placed on the stand in the afternoon. Attorney Tilton conducted the direct examination. He asked: “What was turned over to you by the Tacoma Grocery Company, or its officers?” “Four books,” replied Mr. Joab. The receiver then identified the books, which were small and not more than half filled. Receiver Joab testified that he had demanded of the officers of the company the money and stock supposed to be in their possession. He said he did not receive anything, but that Hale had told him the books and stock had been transferred to Stacey & Co. He wanted the bills receivable, but was told that they, too, had been transferred. The witness denied several of the material points in the testimony of Mr. Hale. He said that Secretary Vanderhoof had offered the books to W. C. Wilson three times in one day. Cross-examined by Attorney Robertson, the witness said he had not sought the office of receiver out of spite. During the cross-examination the receiver said, with much animation, that anybody who said he was a tool of spite was a liar. The case was continued until tomorrow.